How to calculate NPV, and payback. Here is the information

NPV Calculation

Single Cash FlowsInitial Costs

Wind Turbine Purchase and Installation Cost $(3,900,000)

Grant from Renewable Energy Trust Fund 582,000

Investment Net Costs $(3,318,000)

Annual Cash Flows

Annual Cash Flows for 25 years

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Net Cash Inflows

Less: Extra Income Tax (40%)

Net Cash Flows After Income Tax

Net Present Value of Net Cash Inflows After Income Tax at 6% RRR for 25 Years

Plus: XXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Plus: Depreciation Tax Shield

NPV of Wind Turbine Annual Cash Flows

Less: Investment Net Cost

NPV of Wind Turbine

Payback CalculationCash FlowCumulative

Year 0 Investment Net Cost $(3,318,000)

Year 1 25 year Net Cash Inflows After Income Tax xxxxxxx

Year 1 Bank Loan Interest at 7.3% Per Year(xxxxxxx)

Year 1 10 year Renewable Energy Production Tax Creditxxxxxx

Year 1 Depreciation Tax Shieldxxxxxxx

Year 1 Total Cash Inflows xxxxxxxx$(2,815,060)

Year 2 ......(until you get to Zero)$0

Bank Loan Payment

Year 0 $3.3 Million 10-Year Bank Loan Principal $3,300,000

Year 1 Plus Annual Bank Loan Interest (7.3% x $3,300,000) 240,900xxxxxxxxx

Year 1 Less Loan Repayment (Assuming Paid at Year End)(235,482)

Year 2 Plus Annual Bank Loan Interest (7.3% x $3,064,518)223,710

Year 3 198,853

Year 4193,997

Year 5149,140

Year 6124,283

Year 794,427

Year 874,570

Year 949,713

Year 1024,857

Depreciation Tax Shield

YearBook Value Dep %DepBook Value End Tax ShieldTax Shield NPV

1$3,318,00020%$663,600 $2,654,400$46,000$43,396

22,654,40040%1,061,700 1,592,04046,00040,940

31,592,64040%637,080 955,58446,00038,622

4955,58440%382,224573,35046,00036,436

5573,35067%382,233191,11746,000 34,374

6191,117100%191,117046,00032,428